Our Perfect Storm

By

Mike Pulaski

November 6, 2008

The convergence of greed, corruption, political ideology, deficit spending, and wars formed a Katrina-type disaster upon our country.  As the storm left our shores, it gained cyclone strength, smashing the rest of the world’s social, political, and financial institutions with fury.

In its wake, human lives were lost and our peoples’ sense of security disappeared.  Remaining is the fear of yet more storms and a panic sensation.  It may take us generations to repair the storm’s damage to our country.

How did all this happen?

If you want to start the blame process, pick up a mirror and look at yourself.  You and I have ignored our duties as citizens.  The fault lies with us.  Consider a few of the things we have let happen: 

• We have allowed corrupt politicians to remain in office, watching them rake in enormous campaign contributions from lobbyists who, in return, expected votes favoring their clients.  These politicians were unconcerned that the laws they passed could cause harm to the public’s best interests.
• We believed the Neocon’s propaganda beamed at us by corporate media – “free the markets and ban regulations” – convincing us dismantle laws that were designed to protect us.
• We didn’t put much energy into uncovering the lies that caused us to go to war.
• We haven’t paid for our wars from current income; instead, we have borrowed from foreign governments.
• We haven’t questioned the expense of being the global policeman.
• We were greedy.  Because of the regulatory recall, brokers were able to sell high risk home mortgages.  Since these brokers didn’t have to hold the mortgages, they sold them to investors, making billions of dollars in commissions.
• Again, we were greedy.  People took low interest, no down payment home loans, bought houses they could not afford, betting that interest rates would remain low.  They assumed that the increase in the house’s value would enable them to continue making their payments.
• We as a people and we as individuals have been spending more than we make, writing IOUs to foreign countries and maxing out our credit cards.

Who won and who lost in this tumultuous environment?  

The winners are:

·       Mortgage brokers and investment bankers took no risk to make billions of dollars in commissions selling worthless paper to unsuspecting investors. 

·       Many of the financial institutions that bought and sold these worthless mortgages went bankrupt; but we taxpayers bailed them out.  Ironically, these institutions were in the business as professional advisors, evaluating investment opportunities, and were supposed to take the risks involved in making investment decisions.  Instead, the investment bankers did not suffer any loss for their incompetence while we taxpayers are now obliged to pay.

·       The contractors who received no-bid government contracts to service overseas military operations have skimmed untold billions of our money for their personal enrichment.

·       The wealthiest 1% of our population – those who need it the least – received huge tax breaks at the expense of everyone else – many of whom can really use the money.

·       Career politicians received millions of dollars in corporate contributions in exchange for political favors.  Because of these generous campaign contributions, the politicians could afford to ignore their constituents – the man in the street – which has effectively sabotaged our democracy.

·       Corporate campaign contributions caused a recall of many environmental regulations; the opening of public lands for mineral exploitation; and favorable tax treatment for oil companies.  All these companies profited immensely from the favoritism they bought.  For example, Exxon Mobil has consistently shown record profits in every recent quarterly report.

Who are the losers?  You and I.

·       Our national debt has grown at a shocking rate and will burden our great grandchildren.

·       The Social Security and Medicare benefit promises, soon due to the Baby Boomers, cannot possibly be kept.

·       In just one year, the man in the street, through losses in the stock market, transferred half of his wealth to mortgage brokers, investment bankers, and hedge fund managers.

·       Worse yet, we are staring at the inevitable tax increases needed to pay for our debt.

·       The killing and maiming of our young sons and daughters continues while they fight in two wars on the other side of the planet.  There are no adequate provisions made for the long-term care or benefits for our injured soldiers.  Instead, our government officials view them as a budgetary nuisance.

·       The priorities established by our elected officials promote spending money on wars.  Meanwhile, our infrastructure repairs and improvements, a better educational system, healthcare for all, and energy independence are lower priorities and allocated less of our tax dollars.

Had enough?  Want to fix it?  Then it’s about time for us to get up off our couches, turn off the TV, and get involved in civic duty.

Think about it.